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Six Pencils

Quiz 3 - Key Answers
Legal Agreements: Internal/Intercompany Agreements

Question 1

Which of the following best describes the key difference between an Investment Agreement and a Funding Agreement?

  • A. Investment Agreements typically focus on repayment obligations, while Funding Agreements depend on company performance.

  • B. Investment Agreements provide financing with fixed-rate repayment obligations, while Funding Agreements offer returns based on a company’s success.

  • C. Funding Agreements often include fixed repayment terms, while Investment Agreements rely on returns like dividends or shares value increase based on company performance.

  • D. Both agreements allow investors to receive a fixed return, independently of a company’s growth or profitability.

  • E. Both agreements are solely performance-based and contingent on achieving financial growth.

Question 2

Which type of agreement typically includes repayment obligations with fixed terms, regardless of the company’s performance?

  • A. Investment Agreement.

  • B. Funding Agreement.

  • C. Loan Agreement.

  • D. Reseller Agreement.

Question 3

An agreement in which a sponsor or financer expects returns in the form of dividends or an increase in share value, rather than a fixed repayment, would be best described as:

  • A. Funding Agreement.

  • B. Investment Agreement.

  • C. Sponsorship Agreement.

  • D. Share Purchase Agreement.

Question 4

Which type of agreement is most likely to support project-specific needs or short-term financing?

  • A. Investment Agreement.

  • B. Funding Agreement.

  • C. Service Agreement.

  • D. Business Investment Contract.

  • E. Reseller Agreement.

Question 5

Which type of agreement involves a third party who introduces new clients to a company, but does not handle the resale of the company’s products or services?

  • A. Reseller Agreement.

  • B. Introducer Agreement.

  • C. Service Agreement.

Question 6

Which agreement is typically focused on the resale of a company’s products or services, allowing a third party to act as an intermediary who directly sells to clients?

  • A. Introducer Agreement.

  • B. Reseller Agreement.

  • C. Service Agreement

Question 7

Which type of agreement would be most appropriate for a client seeking outsourced payroll services, such as wage calculation and payroll data access, without extensive accounting services?

  • A. Payroll Bureau Agreement.

  • B. Accounting Services Agreement.

  • C. Payroll Accounting Agreement

Question 8

In which type of agreement the primary focus is on providing professional services that ensure financial record accuracy, regulatory compliance and financial reporting, rather than specific payroll processing tasks?

  • A. Payroll Bureau Agreement.

  • B. Accounting Services Agreement.

  • C. Payroll Accounting Agreement.

Question 9

Which type of agreement is primarily used for facilitating bulk payment processing for payroll purposes, allowing multiple payments to be handled in a single transaction?

  • A. Banking Services Agreement.

  • B. Payroll Bureau Agreement.

  • C. Operations Commission Agreement.

Question 10

Which type of agreement would be most likely used as a MOAT Agreement for business financing purposes?

  • A. Professional Services Agreement.

  • B. Investment Agreement.

  • C. Funding Agreement.

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